Germany's Conservatives: Victory and Challenges Ahead

The German federal elections have concluded, and the results are in: the conservative Christian Democrats (CDU/CSU), led by Friedrich Merz, have emerged victorious, securing 28.5% of the vote and 208 seats in the 630-seat Bundestag. While this is a significant win, the party fell short of an outright majority, setting the stage for complex coalition negotiations. As the dust settles, the hard work of forming a stable government begins.



The election saw a surge in support for the far-right Alternative for Germany (AfD) party, which won 20.8% of the vote and 152 seats, becoming the second-largest party in the parliament. This strong performance will undoubtedly influence the political landscape and the policies of the new government, despite the "firewall" against working with them. The AfD's focus on immigration, economic issues, and foreign policy may pressure mainstream parties to adopt more conservative or right-wing policies to appease their voters and prevent them from gaining further traction.



The incoming government, led by Merz, will face several key economic and political priorities:

1. Economic Stagnation: Germany's economy has been stagnant for the past two years, and the new government will need to focus on revitalizing it. Merz has pledged "stability instead of chaos" and aims to form a government quickly to address this issue. The new administration may consider proposals to boost economic growth, such as tax cuts, increased investment, or structural reforms.
2. Immigration: Immigration has been a contentious issue throughout the campaign, with Merz vowing to bar people from entering the country without proper papers and to step up deportations. The incoming government may focus on tightening immigration policies, improving border control, and addressing concerns about integration and security.
3. Conflict in Ukraine: The conflict in Ukraine is a significant concern for Germany, as it is the second-biggest weapons supplier to Ukraine after the US. The incoming government is expected to maintain support for Ukraine in its war against Russia. The new administration will also need to find a way to keep up the NATO target of spending 2% of GDP on defense, even after a special 100 billion-euro fund to modernize the military is used up in 2027.

Forming a stable coalition will be a complex and time-consuming process for the CDU/CSU and other parties. The parties will need to overcome differences in policy views, negotiate a common platform, and address the influence of the far-right AfD. The tight timeline for forming a government may also pose challenges to the stability and effectiveness of the new administration.

In conclusion, the German federal elections have resulted in a victory for the conservative Christian Democrats, led by Friedrich Merz. The incoming government will face several key economic and political priorities, including addressing economic stagnation, immigration, and the conflict in Ukraine. The strong performance of the far-right AfD party will also influence the political landscape and the policies of the new government, despite the "firewall" against working with them. The hard work of forming a stable coalition now begins.